Analysis of Business Environment for Sainsbury's, Microlease, Oxfam

This report provides a comprehensive analysis of the business environments of Sainsbury's, Microlease, and Oxfam. It begins by categorizing these organizations by type, size, and scope, differentiating between public, private, and voluntary sectors. The report then examines the interrelation of organizational functions within Microlease, highlighting the roles of research and development and human resources. Furthermore, it explores the positive and negative impacts of the macro environment on business operations. The analysis extends to internal and external factors, including strengths, weaknesses, and their connections to external macro factors. The report provides a detailed overview of each company's vision and mission, as well as their key objectives. The report concludes with an evaluation of the business environment and its implications for the operations of these organizations.

BUSINESS
&
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Various types, size and scope of organisations......................................................................4
P2. Size and Scope of different types of organisations...............................................................6
TASK 2............................................................................................................................................7
P3 Relationship between different organizational functions......................................................7
TASK 3............................................................................................................................................8
P4 Positive and negative impacts of macro environment upon business operations..................8
TASK 4..........................................................................................................................................10
P5 Internal and external analysis with strength and weakness.................................................10
6 Inter-relation of strengths and weakness with external macro factors...................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Business functions within a whole gambit of number of micro macro factors and have top
negotiate its way through it. The success and sustainability of business depends on how
efficiently it interacts with environment. Business environment is a combination of various
internal factors like management, men, machinery etc. and external factors comprising socio,
economic and other factors. In today's combative business environment there is immense
competition in market adding on to it today customer has also become intelligent which leads to
frequent change in their aspirations and expectations (Asif, Garvare and Ahmad, 2011). Thus, a
firm to attain profitability, growth and large market share is required to cater the needs of its
consumers by analysing prevailing opportunities, rivals tactics, consumers tastes and
preferences so as to make relevant changes in its present products or services or to introduce a
new products.
This project discuss about Sainsbury's which is a multinational public retail company. It
is the second largest supermarket retail dealing in groceries and general commodities. Microlease
is a private limited form providing total solutions for electronic test equipments to help users
deploy equipments in most cost effective manner. Oxfam is a charitable voluntary organisation
working with the objective of eradicating global poverty.

This assignment will discuss about different types, size and scope of firms along with
explaining interrelation of its various functions and how they link to organisation's structure
(Bhaduri and Ha-Brookshire, 2011).
. Further, it will explain both positive and negative impact of macro environment on the working
of firm's operations. Moreover,it will relationship of company's strength and weaknesses with its
external factors.
TASK 1
P1 Various types, size and scope of organisations
Organisation irrespective of their type proves to be a major source of employment and
economic development of a nation. A firm during its origin requires to take decision related to its
sole purpose for conducting business that further shapes its vision, mission and objectives. Firms
are basically segregated on basis of their for profit or not for profit perspective. Mentioned below
are the three main sectors public, private and voluntary in which most firms are divided:
Public Sector: Public limited company are those where in firm has sold a proportion of
its shares to general public for the purpose of fund generation. Public companies conducts its
business operation on the basis of guideline, policies and legislations laid down by government
who controls its functioning for providing products and services as per demand and needs of
general public at affordable prices regardless of income or wealth generation. Public company's
are one of the major source of employment generations as they require large workforce to carry
out and mange its operations (Cavusgil and et. al., 2014). For instance Sainsbury's Ltd. is second
largest supermarket chain across the globe. It main products includes groceries, dairy products,
fresh food and others at affordable prices and high quality.
Purpose: Public limited firms conduct there business with main objectives of
contributing in the economical growth and improving standard of living of the people of a
country. These firms follows a holistic approach for providing benefits to citizens by giving them
employment opportunities, to provide them with basic necessities of life at reasonable prices and
many such other social benefits.
Private Sector: These Private firms forms that portion of economy wherein goods and
services are manufactured and provided to customers as per their requirements for generating
higher profits. These companies that self owned and are managed by individual(s) without any

government interference. They however conducts their business activities as per guidelines
incorporated by government and have a well defined structure, vision and mission statements and
objectives. For example Microlease limited is a private brand that sells, purchase, finance, rents
and lease test equipments across the world (Chetwood and et. al, 2014). It products ranges from
radio frequency spectrum, mobile communication equipments, signal generators and other
products at reasonable prices.
Voluntary Sector: Voluntary organizations are the firms created by a group of people who
shares same interests and motives of contributing and benefiting society somehow. These firms
works towards redressing major social issues and enhancing the life of its members. Voluntary
firms are characterized by its no profit objectives and requires no legal forms to carry out its
activities. The main source of funds of these organizations is its members only who contribute
for company's expenses apart from that other sources includes donations, charity, government
aids and subsidies (Crane and Matten, 2013). One such organisation is Oxfam International,
which is a charitable firm founded in 1942 with its headquarters at Oxford, England. It is one of
the world's leading firm in providing emergency relief services and undertaking long term
development programs for providing assistance to vulnerable committee.
Purpose: Major areas of its working includes disaster relief, poverty eradication, advocacy,
policy research and pro migration.
Legal structure of the sector
Private sector:- It is basically of two types:-
 Sole proprietorship:- Sole proprietorship is a firm that is owned and run by one person
who has direct control over all activities of business. The sole proprietor is accountable to
formulate and mange all process, policies receives all profits and is responsible for all
debts and losses.
 Partnership:- It is an union or joint venture of two or more persons who agrees to sign a
partnership deed defining their profit sharing and capital ratios (Gharajedaghi, 2011).
Public sector:- Mentioned below are government bodies covered under this:- Central government:- Central government is responsible for administrating and
regulating business operations of of both state and local government. State government:- Enterprises under state interference are subject to follow all laws and
regulations that are implemented by government.

 Local government:- Local government in general deals in providing goods and services
that benefits citizens in addition to undertaking activities for social welfare of people.
P2. Size and Scope of different types of organisations
The basic criteria of segmenting organizations are on basis of no of employees required
to handle its operations, scope of a firm that in general are segregated on basis of number of
people required to carry out and manage its operations, its scope which is ascertained to be
depicting size of firm and also various geographical locations where company is conducting its
operations along with its mission and vision. Size and scope of Sainsbury's, Microlease and
Oxfam International are mentioned below:-
Sainsbury's: Sainsbury's is the third largest food retailers in UK. It a well known brand that
deals in groceries and other expanded range of general merchandise. Sainsbury's is known for
offering quality products at fair prices (Gilboy , 2016).
Size: Sainsbury's is the largest retailer of commodities across UK. It offers a variety of
food and non food items at reasonable amount to its consumers. The firm has around 872 stores
offering around 30,000 products to around 19 million consumers. It has team of 150,000
employees that manges its operations in UK , Scotland, Ireland, Belfast, US.
Scope: Sainsbury's captures 16% market share in US. Apart from offering a wide range
of 30,000 products ranging from groceries, dairy products to non food items Sainsbury's also
deals in financial and property sectors. Other areas of operations includes Sainsbury;s Fuel,cafe,
poultry farms, banks and energy. With digitalization era, Sainsbury's has effectively make its
online presence by launching online shopping portal “Sainsbury's Online” where in customers
can choose and place order through their phones (Kian Chong, Shafaghi and Leing Tan, 2011).
Vision: “ Migros – a better life everyday”
Mission: “Our mission is to be the consumer's first choice for food, delivering products
of outstanding quality and great service at a competitive cost through working faster, simpler,
and together”\
Microlease: Microlease is a public limited firm that provides total solutions for test equipments.
It deals in purchase, sell, lease, rental of test equipments to its clients comprising state-of-the-art
warehouse, logistics systems and laboratories.

Size: Microlease has a team of around 350 specialists that strives to provides advice and
solutions to its customers expanded in around 150 countries. It offers around 8000 products and
has a net worth of around $485 million.
Scope: Microlease is the largest multinational brand offering top test equipment brands
with its objective of providing right customised equipments, finance solutions and services for
each customer at affordable price.
Vision: "Integrity - Continual improvement - Inclusivity”
Mission: “Our Mission is to put the "brains" (software) behind all those "eyes"
(cameras) that surround us.”
Oxfam International : It is a global organization that was establishes in 1942 with association of
20 independent charitable firms. It works towards reducing poverty and injustice faced by people
around the globe (Li, and et. al., 2011).
Size: Oxfam international runs its emergency relief campaigns and development
programs at global level in around 100 nations with its 3000 partners in order to provide training
and financial help to vulnerable people in developing and disaster prone areas.
Scope: Oxfam International undertakes various relief programs against food, poverty,
disasters. They are continuously working with its members for the betterment of human rights.
Objectives : Micro lease aims at working towards increasing its sales volumes by 10% till
December 2019 by implementing Life Asset Management solutions for defence industry.
Vision: “A just world without poverty.”
Mission: “To create lasting solutions to poverty, hunger, and social injustice.”
TASK 2
P3 Relationship between different organizational functions
Microlease is a private firm that deals in providing test equipment of best quality in
affordable prices to its clients that consists of industries like telecommunications, wireless,
defense, aerospace, automotive, semiconductors and wired system. It is one of the leading global
firm which has successfully diversified its business operations both geographically as well as in
relation to its product line (López-Gamero, Molina-Azorín and Claver-Cortés, 2011). It clientele
comprises customers from around 13 countries across world demanding a variety of products
including as it provides variety of commodities ranging from radio frequency spectrum, network

analyzer, signal generators and many other instruments. Thus, in order to maintain the lead and
to provide most innovative and customized products as per consumers needs firm has to maintain
coordination among all its divisions so that work efficiency could be maintained as people work
in one direction without any role or responsibilities conflicts towards achieving firm's aim of
providing quality products at reasonable cost (Meiners, Ringleb and Edwards, 2014).
Interrelation of various departments of Microlease is mentioned below:
Research and development: R&D department plays significant part in success of
Microlease s it provides detailed information about needs and requirements of its clients so that it
can provide best solutions for electronic test equipment by either making changes in the present
products or by proving an entire new product customize as per its clients specifications. R&D
functions in close association with finance unit which sanctioned funds that are requisite for
carry out market research.
Human resource department: HR department of Microlease carry out various activities
related to hiring, managing its employees along with designing various compensation and
benefits, training and development programs and works towards maintaining cordial relations
with its workforce in order to motivate them to be competitive by enhancing their skills and
proficiency and work with best of their capabilities to complete their assigned tasks. HR unit
assists other departments like marketing unit by providing them with professionals having right
capabilities so that they can assist clients in managing their queries, understanding their
requirement and providing them with viable solutions for it (Sekaran and Bougie, 2016).
TASK 3
P4 Positive and negative impacts of macro environment upon business operations.
Business firms like Microlease that operates its activities in global market are subject to
impacted with various external environment factors that can affects its profitability and sales
volumes. As macro environment is beyond the control of any business Microlease is required to
be proactive in planning out strategies and plans by scanning market dynamics in order to
successfully avoid or deal with market threats or uncertainties. Mentioned below is company's
PESTEL analysis to forecast positive or negative impact on its business activities.
PESTLE
Analysis
Description Positive effects Negative impact

Political These factors includes all the
policies, legislations
incorporated by government of
a particular nation Microlease
is a multinational company is
subject to various political
issues like labour laws, tax
policy, political stability and
other that are greatly impacts it
sustainability (Tayur,
Ganeshan and Magazine,
2012).
Microlease carefully
analyse various laws
related to conducting
business operations
and employees of
particular;r nation in
order to avoid any
legal issues that can
hamper its business
Microlease is subject
to experience heavy
loss in case firms
become inefficient in
handling any changes
occurring in present
political scenario, tax
or labour laws etc.
Economical It includes factors like wages,
growth rate, economic,
conditions salaries, etc.
prevailing in specific country.
Firm in order to maintain its
profitability and growth need
to closely watch over inflation,
foreign exchange rates so that
it can mange its funds
accordingly.
Microlease can expand
its market share by
providing best quality
products to potential
clients at affordable
price to earn profits
and maximise its sales
.
In case specific nation
is experiencing
inflation phase
purchasing power of
consumers will be low
pertaining loss to
Microlease .
Social It refers to responsibility of a
firm to fulfil its corporate
social responsibility in order to
built positive brand image
Microlease is providing quality
test equipments with ISO
55000 standards to its clients
at reasonable prices
Providing quality
equipments with ISO
quality standards with
reasonable price help
firm to built trust and
positive brand image
among its clients
which help Microlease
In case Microlease
fails to provide
standardised products
it will loose its market
share.

to retain present
customers and attract
potential ones.
Technological It forms one of the major
component in improving and
increasing the profitability and
gain market share by getting
an edge over business rivals.
Microlease in relation to
changing technology has
adopted latest techniques
which has lead to increase in
its utilizing its giving resource
by <30% to 70% .
Microlease have
successfully utilized
latest technology to
cater the needs of its
customers which has
helped the firm to
increase its clientele
and market share.
With advance
technology firm might
experience loss due to
incapability and
inefficiency of it s
employees to cope up
with new technology.
TASK 4
P5 Internal and external analysis with strength and weakness
STRENGTH
Core competency of Microlease lies in its
logistics, IT and technical expertise leading to
optimum use of its resources
Firm is financially sound
Micro lease gain its advanatge over its rivals as
it offers low freight charges on delivery of its
products.
Company provides facility of upgardation on
its equipments
Micro lease has a strong supply chain that add
on to enhancing its customers satisfaction
WEAKNESSES
Lack of proficient employees in comparison to
adoption of latest technology
Lacks in customer care services
Lack of funding to Research and development
department
Higher maintenance cost

level.
Firm provides innovative products apt for
clients requirements (Türetken and et. al.,
2011, June)
OPPORTUNITIES
With investment in new inventory company is
expected to develop close relations with OEM's
giving them competitive advantage.
Microlease to enhance its market share can
have potential for increasing its product line
Company have the opportunities to invest in
emerging economies like Asia and Africa
THREAT
Due to emergence of other market competitors
providing better customer and other services
company is expected to face great competitor.
Rise in cost of inventories
Unstability at global market due to high
inflation rate
6 Inter-relation of strengths and weakness with external macro factors.
Business is greatly impacted by various external factors that need to be analysed in
order generate positive results. Inter relation of macro environment with strengths and weakness
discussed in detail below :
Political- Any changes occurring political stability or other political factors pertaining to
a specific country in which Microlease is conducting its activities, firm is likeable to have great
impact on its operations. This is because Microlease needs to fulfil several legal formalities an d
has to take permission from government of a particular company in relation to set up its
infrastructure, project and so on (Vaiman, Sigurjonsson and Davidsson, 2011). Strengths- being Microlease being a international company requires to make essential
alterations in its strategies, firm policies and operations in accordance with the rules and
regulation, laws that are incorporated by government of particular nation.
 Weaknesses- Recently Microlease fails to follow recent tax policies introduced by
government causing company to experience heavy fine.

Economical- It is essential for Microlease to identify and analyse all available sources of
funds with the company in order to determine and select most feasible and suitable source of
fund generation. Strengths- UK economy being one of the strongest economy having immense growth
and development potential which serves as a major opportunity for firm to expand its
business operations and gain control over large market share. Weaknesses- At the time of recession prevailing in 2011 in UK, Microlease experienced
sudden decrease in its profit and sales volumes (Wack, 2017).
Social- Microlease being a global company providing test equipments aims at providing
qualitative products at affordable price to its customers with ISO standards as per their needs and
specifications. Strengths- By providing standardised products at affordable prices Microlease is able to
built up positive image as well as trust in the company helping it to retain existing and
attract new customers.
 Weaknesses- Microlease still lacks in providing good and satisfactory services to its
customers.
Technological- Microlease core competency lies in its adoption of latest technology by
which open the gates of innovating new and improved products as per changing needs of
customers there by helping company to remain competitive in gaining edge over its market rivals
(Zeng, Li and Duan, 2012).
Strengths- Microlease by making use of latest technique in its process has develops its
efficiency of optimum utilizing its resources which rose to <30% to 70%. If has benefited
company in saving its cost of production over its operations.
 Weaknesses- With introduction of new technology company is provide to provide
necessary training to its employees so as to make them proficient in handling new
technology (Yu and Ramanathan, 2013).
CONCLUSION
The project undertaken concludes that business is subject to a number of internal and
external factors that impact its profitability and sustainability. A firm divided in to various

types ,size and scope depending upon its profit or non profit gaining objectives. Also a firm is
to analyze its micro environment can conduct SWOT and PESTEL analysis.